Which of the Following Is a Proposition of the Institution-Based

question 55

Multiple Choice

Which of the following is a proposition of the institution-based view? 

• A) Decisions based on bounded rationality should be avoided. 
• B) Dependency on informal constraints will always increase the political risks associated with a firm. 
• C) When formal constraints are unclear, informal constraints will play a larger role in reducing uncertainty and providing constancy to managers and firms. 
• D) Informal constraints always increases transaction costs for the firm.

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Definitions:

Kaizen

A Japanese business philosophy of continuous improvement of working practices, personal efficiency, etc.

Japanese Concept

A philosophy or practice originating from Japan, often applied to management, manufacturing, or cultural approaches.

User Applies

The process by which individuals utilize and implement tools, knowledge, or systems to achieve specific tasks.

Client Specification

Detailed requirements provided by a client regarding the desired features and standards for a project or product.